Electricity tariffs increase

WALVIS BAY

20 July 2018 | Energy

Otis Finck

The Erongo Regional Energy Distributor (Erongo RED) announced an average weighted tariff increase of 4% for the period July 2018 to June 2019.

If you were paying N$1.38 per unit before, you will now be paying N$1.44 on the first block.

Fessor Mbango, the CEO of Erongo RED, told members of the media on Friday in Walvis Bay that the increase comes after NamPower was granted a 5% average weighted tariff increase for the same period.

The new tariffs will apply to all customer categories in the Erongo region except for some mining companies that are directly fed by NamPower. Due to slow economic activities over the last two years, large power users will only receive a 2% increase for 2018/2019 in order to stimulate business activities in the region.

Mbango explained that the 4% weighted average increase on different tariff categories is applied to different groups of consumers in the Erongo region. The actual impact on customers will vary according to the tariff category to which they are connected and their consumption pattern.

“The ECB levy increased by 7% and an announcement on the NEF levy will be forthcoming. NamPower announced an average tariff increase of 5% country wide in May 2018. The impact of this increase on Erongo Red is 5%, which means that the electricity provider will be paying an average N$1.69 per kWh on bulk tariffs. Taking into account the increase by NamPower and other associated costs, the ECB granted Erongo RED an average tariff increase of 4% effective from 1 July 2018.”

The actual tariff increase per different customer segment will be 5% for domestic single phase users, pensioners (prepaid/conventional) and business single phase users.

Prepaid customers above and below 20 ampere as well as institutional single phase customers will pay 4% more. The same applies to business 3 phase, prepaid business above 30 amps and prepaid business up to 30 amps consumers.

Institutional large power users will pay 3% more. Institutional three phase and large power users will pay 2% more.

Mbango also cautioned that during the winter period (June, July and August) consumers will experience high bills especially customers on Time of Use meters during the July, August and September billing cycle. He said that the high bills are mainly driven by high usage of electricity during winter which translate into higher bills and urge all customers to use electricity sparingly during this particular period.

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